DOWNERS GROVE, Ill. — Medicare beneficiaries treated by physicians in the medical group that is part of Duly Health and Care, the largest independent multi-specialty physician practice in the Midwest, posted total Medicare expenditures in 2023 that were nearly $7,800 lower on average than their peers treated by hospital-affiliated physicians.
That’s among the key findings of “Health System Consolidation and Employer/Payer Considerations,” a new study of Chicago’s healthcare market from Avalere Health.
“This study provides hard evidence to support what we see every day at Duly,” said Dr. Paul Merrick, chief physician executive and chairman of Duly Health and Care. “Independent physicians provide more personalized, more efficient care at lower cost than their hospital-affiliated peers.”
Avalere’s research shows how hospital-driven consolidation of independent providers is behind much of the growth in healthcare costs, particularly in Illinois. Fifty-eight percent of physicians in Chicago across five specialties — cardiology, gastroenterology, oncology, orthopedics, and urology — are affiliated with hospitals. That’s 13 percentage points higher than the national average.
Consequently, many procedures are performed in the higher-cost hospital environment more frequently in Chicago than the rest of the country. For example, nearly three-fourths of mammograms in Chicago in 2024 were performed in hospitals, compared to slightly over 50% nationally.
Additional key findings include:
- Cost Savings. Medicare beneficiaries treated by Duly physicians across five specialties had total risk-adjusted annual expenditures that were on average 25% lower than beneficiaries treated by hospital-affiliated physicians, depending on the specialty, with savings ranging from $6,190 in gastroenterology to $19,510 in oncology.
- Utilization. Medicare beneficiaries under Duly’s care experienced 15% fewer inpatient days, 12% fewer emergency department visits, and 5% more follow-up visits within 14 days of discharge.
- Enhanced Savings and Experience with Coordinated Care. Medicare beneficiaries receiving coordinated care from Duly primary care and specialty physicians experienced further reductions in expenditures and improvements in outcomes. In gastroenterology, for example, Duly patients saw an additional 36.1% in savings — which equates to more than $17,021 — compared to patients under the care of hospital-affiliated physicians.
“Employers and families across Chicagoland are struggling with rising healthcare costs, and the inflated cost of care delivered in hospital systems continues to be a major driver,” said Dan Greenleaf, Chief Executive Officer of Duly Health and Care. “This new research shows that independent physician practices like Duly are a viable alternative to hospitals, offering better care and better patient outcomes at lower cost.”
DuPage Medical Group, Ltd., dba Duly Health and Care of Northern Illinois (“Duly”), provides medical care to Medicare and commercial beneficiaries in the Chicagoland area.
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To read the full study, visit: https://advisory.avalerehealth.com/insights/white-paper-health-system-consolidation-and-employer-payer-considerations
About Duly Health and Care
The Duly Health and Care brand consists of some of the largest independent, multi-specialty, physician-directed medical groups in the nation, with more than 1,000 primary care and specialty care providers and over 6,000 team members across more than 150 locations. The Duly Health and Care brand includes three medical groups —DuPage Medical Group Ltd., Quincy Medical Group, and The South Bend Clinic LLC. Duly is deeply committed to caring for patients in traditional and value-based care arrangements, ensuring a focus on quality, efficiency, and enhanced patient experiences throughout the Midwest.
For more information, visit dulyhealthandcare.com.